The model is built using the &ldquo;Microsoft Excel&rdquo; spread sheet application. Based on this data the model calculates the 10 day moving average of the PRICE. As the actual PRICE should closely resemble the value of the moving average the difference between the actual PRICE and the moving average is calculated to arrive at the &lsquo;Difference&rsquo;. Also moving 10 day standard deviation is calculated for the PRICE This standard deviation is multiplied with the &lsquo;K-Value&rsquo; to obtain the &lsquo;K times standard deviation&rsquo;. Thus the aberration in the price indicated by the difference between actual data and moving average is divided by the volatility of the PRICE represented by the standard deviation multiplied by optimal K-Value to obtain the &lsquo;Price Difference by K times standard deviation&rsquo;. By using these data the signals signifying the market movements are derived. If the &lsquo;Price Difference by K times standard deviation&rsquo; is greater than &lsquo;1&rsquo; then prices are expected to increase and the signal is &lsquo;+&rsquo; indicating an upward trend. If the &lsquo;Price Difference by K times standard deviation&rsquo; is lesser than &lsquo;-1&rsquo; then the prices are expected to fall and hence the signal is &lsquo;-&lsquo;. If the &lsquo;Price Difference by K times standard deviation&rsquo; is not very significant, the price movement cannot be predicted with certainty and hence the signal is &lsquo;0&rsquo;.